Loddon Mallee Medicare Local warns against axing service

Central Victoria's Medicare Local says it will have to wait until the federal budget next month to find out whether it has a future.

The Loddon Mallee Murray Medicare Local runs on an annual budget of between $10 million and $12 million and services the broader Bendigo and Echuca regions.

However, it is understood the Government is planning to phase out the system set up by Labor to coordinate primary healthcare and replace them with larger, centralised agencies.

Loddon Mallee Murray's chief executive, Matt Jones, says he has had no indication from the Government but he would be urging it to keep the system.

"We know the Government is very concerned on trying to reduce waste and cost," he said.

"We think ensuring there's more prevention and a stronger primary healthcare system, that's where most savings can be made, rather than abolishing services that will subsequently be higher reliance on acute services in the region."

The Nationals' federal Member for Mallee, Andrew Broad, says losing Medicare Locals would not have a big impact on services.

Mr Broad says he has spoken to a number of health services that are unhappy with the current arrangement.

"Increasingly what I am seeing is that instead of working constructively with local providers, they've been putting on more of their own staff and trying to be service providers themselves which I think is outside of that aim," he said.

"Look, I think at the end of the day, do we need another layer of bureaucracy? I'm not sure we do."